With the way that Bitcoin and related cryptocurrencies have progressed in the past few months, any news of further improvement should not be a surprise. However, there are still instances where even the most seasoned of cryptocurrency enthusiasts can get to be taken aback.
This is one of those instances.
It was recently reported by Brazilian media outlet, Globo, that the number of Bitcoin investors in the country is far past the number of stock exchange investors in B3 – the Sao Paulo stock exchange that is the largest exchange in Brazil and the second largest exchange in the world.
Specifically, Bitcoin exchanges in the country collectively held around 1.4 million registrations as of December 2017, whereas B3 held about 620,000 registrations.
It should be noted that there could be some duplicate entries between the ledgers within cryptocurrency exchanges and the stock exchange, as the data does not include investors registered at both places. Nonetheless, the fact that such an event is even possible is significant in itself.
Business is booming for cryptocurrency exchanges
The cryptocurrency exchanges in Brazil have seen a massive increase in business, especially in the past few months, which again, is an event that is expected considering that Bitcoin had taken the world by storm over the last quarter of 2017.
For instance, Bitcoin to You, a local exchange, has seen its revenue grow to a whopping R$1.5 million (around $450,000) a month. The exchange reportedly handles 300,000 customers.
Another cryptocurrency exchange, Bitcoin Market, has lately been recording around 5,000 new registrations per day. Whereas, the same exchange only had about 500 new registrations per day around the same time last year.
And these very recent values suggest that the current correction in value for Bitcoin has not dampened the spirits of these new investors.
Experience is not required to buy cryptocurrency
The amount of interest that is being registered throughout Brazil also has to do with the fact that anyone, from experienced investors to novice students, can purchase cryptocurrency and benefit from the potential capital.
This has caused almost everyone to try and jump into cryptocurrency investment. While this is a good thing for the exchanges, it also poses a risk according to the financial institutions of Brazil, who have issued numerous risk assessment warnings about investing in cryptocurrencies.
Experts also point towards how cryptocurrency’s value fluctuates from time to time, but how new investors that have only recently learned about cryptocurrencies are not aware of this trend. Experts suggest to these new investors; any downward movement is a cause for alarm, which could eventually lead to more speculation within the market.
However, these warnings have not stopped the investors – new and old alike – from signing up on these exchanges. By the looks of it, they are not planning on stopping anytime soon either, and the trend continues to be headed in the direction of more sign-ups and more participants.
We hope that the continued boom of the cryptocurrency industry in the country does not lead the Brazilian government to follow China’s footsteps to curb this phenomenon. Instead, it should take a page out of Japan’s playbook and let this new financial sector flourish under friendly regulations.